CEO Nancy McKinstry said in a recent earnings webcast, "We show clear underlying improvements over a year ago. " She also reported the company has increased investment in the development of new products. While that remains in the range of 8 percent to 10 percent of revenue, "We have stepped up investments this year, pushing our overall investment to the upper level of that range."
Tax & Accounting reported 3-percent organic revenue growth, compared to 1 percent a year ago. Operating profit rose to about $160.2 million, an increase of 17 percent organically and 16 percent in constant currencies. Divisional revenue reached roughly $4952.5 million, up 3 percent both organically and in constant currencies.
The company touted results for its cloud-based CCH Axcess suite, which is said accounted for more than 40 percent of new software revenue in the United States.
Company-wide, net income dropped to about $181.4 million, a decrease of 19 percent from a year earlier. Total revenue was roughly $2.23 billion, a rise of 3 percent in constant currencies and 2 percent organically.
Small Firm Services, which markets the TaxWise and ATX lines, had improved organic growth with increased software sales outweighing the continued market-wide decline in bank products. McKinstry noted the unit's iFirm application, which originated in Australia. It was introduced in the United States and India during the half and is being rolled out in Singapore and Hong Kong.
